The July 14th midnight rise played a key role in helping the benchmark Nifty 50 close above 19,500 for the first time as it broke through the recent trading range (19,300-19,500) with a low call of 19,500. accomplished. The index held high throughout the session, largely aided by IT bulls, but volatility fell to near-historical levels.
The Nifty50 started high at 19,493 and remained range bound with a positive bias. Over the past hour, the bulls have continued their rally and the index hit a new all-time high of 19,595. Finally, the index rose 151 points to a new closing high of 19,564, forming a bullish candlestick pattern on the daily chart with above-average volume. Over the week, the index rose 1.2%, forming a bullish candlestick pattern with a long lower and smaller upper shadow on the weekly scale, leading to 16 consecutive weeks of new highs.
There is also a breakout of the upside resistance trendline near the December 1, 2022 and July 7, 2023 highs, which is a positive sign.
With support now rising from 19,000 to 19,200, Nifty’s next hurdle could be 19,600, followed by a range of 19,800 to 20,000. Experts say there is. “Nifty has formed a long bullish candlestick on the weekly chart, eclipsing last week’s bearish candlestick and ending higher. So, a breakout to the topside is confirmed on Monday, with a possible rise thereafter. If this is the case, there is likely to be more upside in the market going forward,” said Nagaraj Shetty, technical research analyst at HDFC Securities. He further said that after breaking above key resistance at 19,500 (1.236% Fibonacci forecast for this week based on recent lows to lows), the next upside target to watch will be around 1.382% Fibonacci (forecast 19,800 levels in). It will likely be Nifty’s next upside target next week. He added that immediate support is at the 19,470 level.
On the options side, we observed that the maximum call position was 19,600 strikes followed by 20,000 strikes, meaningful call writing was 19,800 strikes followed by 19,700 strikes, and the maximum put position was 19,500 out of 19,400 strikes. I was. Put lettering at 19,400 strikes, then lettering at 19,500 strikes.
The data above suggests that near-term resistance for the Nifty50 is in the 19,600-19,700 range, while near-term support is in the 19,500-19,400 range.
BANK NIFTY
Hedged founder and CEO Rahul K. Gose thinks Bank Nifty is the index to watch next week. The index settled at 44,819, up 154 points, forming a hammer candlestick pattern, a bullish reversal pattern on the daily chart after the recent downtrend. It is also a positive sign that the current downtrend has not broken out of the horizontal resistance trendline.
“Bank Nifty closed today on a bullish hammer candlestick just above the 20-day exponential moving average (44,554). She has support at this average. We believe it will be the beginning to be crossed.” “The near-term hurdle is 45,200 next week,” Rahul said.
Nifty Bank lost just over 100 points this week.
The Indian VIX index, which measures the expected 30-day volatility of Nifty 50 stocks, fell 2.33% from 10.94 to 10.68, its lowest level since December 2019, in a trend favorable to bulls.
